$400 billion House spending package includes historic affordable senior housing funding

The US House of Representatives on Wednesday passed a $400 billion spending package for fiscal year 2023 that includes the largest investment in new affordable senior housing since 2010.

The so-called “minibus” package contains six spending bills providing funding to various agencies, including the Department of Housing and Urban Development. The HUD portion of the package would provide a 12% increase over last year’s budget, including a significant increase for the creation and operation of new Section 202 Supportive Housing for the Elderly. 

Specifically, the proposed bill would provide $323 million to create and operate 3,500 new Section 202 homes, $31 million to support budget-based rent increase at Section 8 project-based rental assistance properties, $6 million to get Section 202 / PRAC rents up prior to conversion, and $125 million for the renewal of service coordinator grants, according to LeadingAge.

In addition, the bill includes $25 million for intergenerational housing and funding for 140,000 new Housing Choice Vouchers, as well as $10 million for home modification grants for older adult-owned homes. 

Under HUD rules, project-based vouchers can be used in assisted living communities to cover the cost of shelter, in an effort to make the housing choice more affordable.

Wednesday during a LeadingAge membership call, Vice President of Housing Policy Linda Couch called it a “strong” bill, although not bipartisan. She said she expects to see some changes before Congress finalizes the bill later this year, but she said it is apparent that the House “understands the severe shortage of affordable seniors housing and responded with strong funding bills.”

Affordable senior housing is one of LeadingAge’s top policy priorities for 2022. The association projects the creation of an additional 13.8 million new older adult households between 2020 and 2040, 5.5 million of which will be renter households.

Argentum and LeadingAge previously applauded the reports accompanying the FY23 HUD and Labor, Health and Human Services, and Education funding bills for addressing priorities affecting senior living. 

The Senate version of the bill is expected to be released later this month. Congress has a September deadline to pass its annual spending bill or pass a continuing resolution. 

Tax incentives a focus

The Senate Committee on Finance held a hearing Wednesday on the role of tax incentives in affordable housing, highlighting the importance of the low-income housing tax credit program to preserve and expand the nation’s affordable housing supply. 

Oregon Housing & Community Services Executive Director Andrea Bell, who also testified on behalf of the National Council of State Housing Agencies, said that although all populations lack affordable housing, older adults are particularly vulnerable. 

Bell urged lawmakers to pass the Affordable Housing Credit and Improvement Act and the LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence, or LIFELINE, Act. 

The legislation would allow some of the $350 billion in state and local American Rescue Plan Act funds to be used as long-term loans in Low-Income Housing Tax Credit developments. This allowance would make it easier for operators to finance affordable housing through the housing credit.